North CarolinaNorth Carolina voters will decide whether to cap income tax rates
At the November 3, 2026, statewide election, voters will decide whether to cap income tax rates at 3.5%; approval would apply starting with tax years beginning in 2027.
What it does
North Carolina voters will decide whether to set a constitutional 3.5% cap on income tax rates. The cap takes effect only if a majority votes for it.
Argument forIf voters approve the cap, it could give income taxpayers a clear constitutional limit on the state income tax rate.
Argument againstIf voters approve the cap, it could limit lawmakers’ ability to raise income tax rates when the state needs more revenue.
More detail
The law puts a constitutional amendment before voters that would cap income tax rates at 3.5%. The proposed cap covers taxes on income under the North Carolina Constitution. The cap takes effect only if a majority of votes cast favors the amendment. The vote is at the statewide general election on November 3, 2026. If approved, the cap takes effect upon certification and applies to tax years beginning on or after January 1, 2027.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 21RatifiedLatest
- May 21Ch. SL 2026-4Major
- May 20Passed 2nd ReadingMinor
- Vote recorded Third Reading. Result: pass.Lower
- Vote recorded Second Reading. Result: pass.Lower
- May 20Passed 3rd ReadingPassed House
- May 20Ordered EnrolledTo Governor
- May 19Reptd FavMinor
- May 19Placed on Today's Calendar
- May 19Amendment Ruled Out-of-Order A1
- May 19Amend Tabled A2
- May 19Amend Tabled A3
- May 19Passed 2nd ReadingMinor
- May 19Passed 3rd ReadingPassed Senate
- May 19Special Message Sent To House
- May 19Special Message Received From Senate
- May 19Passed 1st ReadingMinor
- May 19Ref To Com On Rules, Calendar, and Operations of the HouseMinor
- May 19Reptd FavMinor
- May 19Cal Pursuant Rule 36(b)
- May 19Placed On Cal For 05/20/2026
- May 18Reptd FavMinor
- May 18Re-ref Com On Rules and Operations of the SenateMinor
- May 14Passed 1st ReadingMinor
- May 14Ref To Com On Rules and Operations of the SenateMinor
- May 14Withdrawn From Com
- May 14Re-ref to Finance. If fav, re-ref to Rules and Operations of the SenateMinor
- May 13FiledIntroduced
Taxes & Budget